EDITORIAL: Game on for gambling

Business is brisk in the local gambling industry, with those frustrating (and costly) months of Covid restrictions now a distant memory. Latest statistics released by the National Gambling Board showed an astounding R1.1-trillion was wagered in the year to end-March 2024 — more than 40% higher than last year. Gross gaming revenue (GGR) was a quarter higher at R59bn.

But here’s the interesting bit. Just more than 60% of GGR was generated by betting — which is now dominated by the fast-growing online games segment unleashed by players such as Hollywoodbets and Betway. Traditional casinos, mostly owned by Sun International and Tsogo Sun, are a distant second, generating 29.3% of GGR.

Pre-Covid, casinos would have been the dominant gambling mode. In fact, in financial 2019 casinos generated 60% of GGR, so the swing to betting’s convenient online gaming offering has been quite dramatic. The limited-payout machine industry and electronic bingo — once the fast-growing segments in local gaming — comprised just 7% and 3.2% of GGR.

Buoyed by its growing online offerings, betting increased GGR by an eye-popping 51.2% — a stark contrast to casinos that grew only fractionally over the 2023/2024 year.

Puritanical observers may frown on the sprightly growth in gambling splurges. There is a constructive upside, though. A total of R4.8bn was collected in taxes and levies — 19% higher than the previous year. Betting chipped in almost half of the collected taxes and levies, and should continue to donate generously to the fiscus as mainstream casino players try to muscle in on market share in this fast-growing niche.